Cyber Threats and Data Breach Insurance Coverage

Companies you represent that face an ever-increasing threat of a cyber attack need to take the necessary steps to minimize their risks. There are several ways in which they can safeguard their servers, computers and other technological gadgets against such threats, as well as understand exactly how to respond to a cyber breach quickly and efficiently.

In order to alleviate concerns they should take the obvious approach and purchase data breach insurance coverage. When it comes to eliminating threats throughout the organization, security must reach beyond the IT department. The company must evaluate employee exit strategies (HR), remote project protocol, on site (and off-site) data storage practices, and use the information to establish and enforce new policies and procedures to prevent future occurrences.

An ounce of prevention

It is the responsibility of each individual organization to take steps to address data security threats. They then need to disseminate this plan throughout management to ensure everyone knows what to do in the event of a breach. They should create a security team dedicated to ensuring that the same standards for data security are applied regardless of location, by ensuring security and authentication software is installed on mobile devices and kept up-to-date, and providing adequate training and technical support for mobile workers.

Keeping current with security software updates will be a useful deterrent to hackers. After all, it’s a lot easier to go after information that doesn’t have the tightest security money can buy. It’s important to define your security requirements with vendors and third-party service providers. They may be required to maintain appropriate security measures in compliance with certain state and federal regulations. Ensure that your organization maintains control of data at all times, especially with offshore data storage or services.

While the majority of state statutes require “notification only” if a breach compromises unencrypted personal information, professionals have been known to break encryption codes without much difficulty in a lot of cases. Encrypting data in transit (and at rest) is a best practice, but, when used alone, it can give your client a false sense of security.

When it comes to data breaches, the risk is simply too high, from the costs of notification to the loss of customer loyalty. Help your clients make the right choice and invest in data breach insurance coverage, it’s their best line of defense after an attack occurs.